Shanghai's economy chalked up year-on-year growth of 10.3 per cent in the first half and officials are predicting the full-year expansion will be in double digits. The first-half performance, which pushed the city's gross domestic product to 202.4 billion yuan (about HK$194.99 billion), was more than two full percentage points above the 8.2 per cent rise recorded for the mainland overall, according to the Shanghai Municipal Statistics Bureau. 'We see strong prospects for the second half and can expect to have double-digit growth for the full year,' bureau director Pan Jianxin said. Growth is being fuelled by a strong export sector and an upturn in foreign investment, according to Mr Pan. Exports jumped 44.7 per cent in the half, compared to a year ago, to reach US$11.76 billion. At the same time foreign investment reversed a downward trend seen since 1997. Actual realised foreign investment rose 5.6 per cent, to US$1.37 billion, while contracted investment was up 6.3 per cent to US$2.19 billion. Industrial output in the nation's big eastern city grew 12 per cent. The state sector also performed well, posting profits of 8.12 billion yuan, up 37.8 per cent on the half last year. Fixed-asset investment reversed a two-year decline to reach 60.29 billion yuan, rising 0.2 of a per cent for the first half of the year. Nagging deflation was one problem that did not go away, however. While the consumer price index grew 4.7 per cent against the same period last year, the retail price index declined by 3.1 per cent. Retail sales of consumer goods reached 82.51 billion yuan, an increase of 11.9 per cent, adjusted for the decline in retail prices. Average urban income was 5,937 yuan, an increase of 5 per cent over the period last year. For every 100 urban households, there were 22 mobile phones and 21 computers in Shanghai, the official data said.